Gold prices gain as Mideast worries dominate sentiment
GOLD prices edged up on Thursday (Oct 26) as the Middle-East conflict kept investors worried, with bullion standing firm despite a stronger US dollar and bonds yields.
Spot gold rose 0.3 per cent to US$1,985.89 per ounce by 0137 GMT. US gold futures were up 0.1 per cent to US$1,996.30.
Israel kept up its strikes on Hamas targets in Gaza as it prepared for a ground invasion and world powers at the United Nations failed to secure plans to deliver critical humanitarian aid.
Investors await the US GDP numbers for the third quarter later in the day and the PCE price index on Friday ahead of the Federal Reserve’s rate decision next week.
The US dollar and benchmark US 10-year Treasury yields climbed after data indicated that new-home sales surged to a 19-month high in September, affirming market expectations of prolonged high rates heading into 2024.
Elsewhere, the European Central Bank will keep interest rates unchanged at a record high on Thursday, snapping a 15-month streak of hikes.
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The artificial intelligence boom could support industrial demand for precious metals next year, although high interest rates and economic concerns may be near-term headwinds, Metals Focus said.
China’s gold consumption in the first three quarters of 2023 climbed 7.3 per cent from a year earlier, the China Gold Association said on Wednesday.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.2 per cent on Wednesday.
Sibanye Stillwater on Wednesday said a planned restructuring, which could see it close four loss-making platinum group metal shafts in South Africa, could potentially result in the loss of 4,095 jobs.
Spot silver gained 0.1 per cent to US$22.92 an ounce, platinum fell 0.4 per cent to US$898.88 and palladium slipped 0.6 per cent to US$1,119.14. REUTERS
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